This type of analysis is kind of pointless because the chances of the key assumptions being correct are almost none. How many free vs paid users will sign up? How much resources will they actually consume? The answers aren’t known until you test the market and probably change over time too.
That said, if he’s just bootstrapping this as a hobby with low overhead these prices are just fine. He probably actually makes a good profit once his user counts climb a bit. This type of service can be easy to keep afloat in these prices is my gut feeling and that’s probably good enough.
Besides there are some easy solutions to an emergency situation. Raise prices. Stop offering free plans. Change the resource limits. Etc. so much he can do before going broke.
That said, if he’s just bootstrapping this as a hobby with low overhead these prices are just fine. He probably actually makes a good profit once his user counts climb a bit. This type of service can be easy to keep afloat in these prices is my gut feeling and that’s probably good enough.
Besides there are some easy solutions to an emergency situation. Raise prices. Stop offering free plans. Change the resource limits. Etc. so much he can do before going broke.